Do you know what your business is lacking? Is it a powerful marketing strategy to permeate all areas of society to create a stronger brand presence or is it a lack of technological development? Believe it or not, you may be in dire need of executive coaching. Employees are the life blood of any business, after all, and poor hiring practices or coaching have proven to have dire long-term consequences for financial success.
One of the most frustrating issues for both employee and business is that of employee turnover. It’s estimated over two million Americans quit their job on a monthly basis, though the average turnover rate for hourly employees is only four months — this, however, is four times higher than their salaried counterparts. Overall, the majority of all turnover occurs within the first year of employment. Executive coaching is widely considered one of the best ways of addressing problems from the ground up.
The flip side of employee turnover is employee retention, which involves giving the average employee incentive to stay with a company or small business for an extended period of time. The average manager spends anywhere from 25% to 40% of their time dealing with workplace conflicts and public resource obligations. Workers who take time off because of anxiety or a work conflict will be out of the job for at least three weeks on average.
One of the most commonly cited reasons for quitting are a lack of opportunities for professional development, totaling 30% of recent survey. Additional reasons include inadequate compensation, lack of a challenge and a poor work and life balance. Two-thirds of both men and women say work has a very significant impact on their stress level, with one out of four calling in sick or taking a mental health day due to work-related stress.
The effects of employee turnover can be felt on all sides of the equation. The average cost of replacing an employee earning $8 per hour is around $3,500, with the cost of replacing middle level employees as high as 150% of their yearly salary. High-level employees can reach upwards of 400% of their annual income, though only 17% of organizations are even aware of the direct costs of employee turnover. Unhappy employees struggling to find work and businesses unable to pick up the slack can all stand to benefit from bolstered executive coaching methods.
Using Executive Coaching
Employee turnover and absenteeism can be challenged and reduced through strategic planning and business coaching. Workplace stress causes around one million American workers to miss work throughout the week, with two out of three CEOs not receiving outside leadership advice despite wanting it. Filling in these gaps will go a long way in cultivating satisfaction and success for all involved. Executive coaching engagement normally last six to nine months and companies that invest in executive coaching see a return as high as seven times. Are you ready to overhaul your business for the better?